The United States has added Chinese e-commerce giant Alibaba, internet search provider Baidu, and automaker BYD to a list of companies it believes are aiding Beijing's military, a move that could further inflame tensions between the two countries.
Pentagon Updates Controversial List
The long-awaited update, released on Monday, supersedes a previous list from early 2025 and comes less than a month after former President Donald Trump met Chinese President Xi Jinping in Beijing, where the two leaders maintained a delicate truce in the ongoing trade war. The list now includes a broad swathe of China's top technology firms, reflecting Washington's security concerns amid intense geopolitical competition.
In February, when Trump's trip to China was pending, the Pentagon briefly posted an updated version of the list, known as the 1260H or CMC list, but quickly withdrew it with little explanation. The new version mirrors that February list, with the exception of the inclusion of China's top memory chipmakers CXMT and YMTC, which had been removed from the short-lived February index.
New Additions and Removals
Other companies added to the list include biotech firm WuXi AppTec, AI-driven robotics company RoboSense Technology Co Ltd, and Unitree, a leading Chinese maker of humanoid and quadruped robots. On June 1, US AI chipmaker Nvidia said it planned to work with Unitree to build robots for researchers.
Some companies were removed from the list, including two entities owned by Chinese state-owned oil major China National Offshore Oil Corporation (CNOOC) – CNOOC China Ltd and CNOOC International Trading. However, CNOOC subsidiary China BlueChemical Limited was added, and the filing noted that CNOOC is directly controlled by China's government.
Company Reactions
Alibaba said in a statement that there was "no basis" for its inclusion on the list. "Alibaba is not a Chinese military company nor part of any military-civil fusion strategy. We will take all available legal action against attempts to misrepresent our company," the statement said.
Baidu "categorically" rejected its inclusion, telling Reuters: "The suggestion that Baidu is a military company is entirely baseless. We will not hesitate to use all options available to us to have the company removed from the list."
WuXi AppTec responded that its inclusion was "incorrect" and said it would "take immediate actions to challenge and correct this erroneous designation."
BYD, CXMT, YMTC, RoboSense, Unitree, BOE Technology Group, Tianma Microelectronics, and TP-Link Technologies did not immediately respond to requests for comment.
China's Response
China's embassy in Washington said Beijing opposed "making discriminatory lists to go after Chinese companies" and that its firms observe local laws and regulations. "The U.S. should stop its wrong practice and create a fair, just and non-discriminatory environment for Chinese companies," an embassy spokesperson said.
Implications of the Listing
Although the listing does not formally impose sanctions on Chinese firms, under recent US law, the Defense Department will be prohibited from contracting directly with companies on the list starting later this month, and from buying their products or services via third parties beginning in 2027. Companies can petition for removal, the Pentagon said.
House of Representatives China Select Committee Chair John Moolenaar said the updated list "is a warning to American businesses, all levels of government, and the American people. These Chinese companies are working with the Chinese military against our national interests."
The Pentagon's filing noted that listed firms "qualify for designation as 'Chinese military companies'" and operate in the US, with the update required at least annually under US law.
